M: 021 22 63 917

First home buyers pace setters: CoreLogic

We strive to keep Wellington property owners up to date with the latest property information.

Here is another interesting Wellington real estate related news article that we thought may provide you with helpful information.

Wednesday 17 October 2018

First home buyers accounted for nearly one in four residential property buyers in the September quarter, rivalling investors, according to new research.

The 24% slice of the market for FHBs compares to just 18% of the market four years ago, the research firm said. Christchurch and Wellington were said to be popular destinations.

CoreLogic research analyst Kelvin Davidson said: “At those levels,FHBs’ share of the market is on a par with the pre-GFC peaks*, while it’s also the first time that they have matched mortgaged multiple property owners.”

Mortgaged multiple property owners also took a 24% share in the September quarter. CoreLogic said investors, remained resilient, despite measures introduced to curb spending, such as ongoing LVR restrictions requiring a 40% deposit.

Kelvin Davidson said: “Despite extra regulatory pressure (e.g. Healthy Homes; the looming removal of negative gearing; longer-term threat of a capital gains/income tax), these figures show that new investors are still entering the market and/or existing landlords are expanding their portfolios.”

Davidson pondered whether FHBs would surpass multiple property owners this quarter: “It’ll be really interesting to see if FHBs can push ahead of mortgaged MPOs next quarter, driven by access to their KiwiSaver funds and also a clear financial incentive (often renting can be more expensive than a mortgage repayment, provided that the deposit hurdle can be cleared).”

Copyright 2016 Halina Kuchciak & John Reyna | Privacy Policy | Licensed under REAA 2008 | * All offers are only available through Halina Kuchciak & John Reyna for a limited time and conditions apply | Articles